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Joint Press Release

September 27, 2020
Saudi Arabian Oil Company(Saudi Aramco)
The Institute of Energy Economics, Japan (IEEJ)
Saudi Basic Industries Corp. (SABIC)World’s first blue ammonia shipment opens
new route to a sustainable future Successful demonstration of supply network from Saudi Arabia to Japan 40 tons of high-grade blue ammonia already dispatched Progress is a significant step towards a sustainable hydrogen society and acircular carbon economy
Dhahran, Saudi Arabia; September 27, 2020 – Aramco and the Institute of Energy
Economics, Japan (IEEJ), in partnership with SABIC, have successfully demonstrated
the production and shipment of blue ammonia from Saudi Arabia to Japan with support
from the Japanese Ministry of Economy, Trade and Industry (METI). Forty (40) tons ofhigh-grade blue ammonia have already been dispatched to Japan for use in zero-carbon
power generation.
The announcement comes amid growing appreciation of the role hydrogen will play inthe global energy system. Ammonia, a compound consisting of three parts hydrogen andone part nitrogen, can contribute to addressing the challenge of meeting the world’sgrowing energy needs in a reliable, affordable and sustainable manner.
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The Saudi-Japan blue ammonia supply network demonstration spanned the full value
chain; including the conversion of hydrocarbons to hydrogen and then to ammonia, as
well as the capture of associated carbon dioxide (CO2) emissions. It overcame challenges
associated with the shipping of blue ammonia to Japan for use in power plants, with 30
tons of CO2 captured during the process designated for use in methanol production atSABIC’s Ibn-Sina facility and another 20 tons of captured CO2 being used for Enhanced
Oil Recovery (EOR) at Aramco’s Uthmaniyah field.
This milestone highlights one of several pathways within the concept of a global CircularCarbon Economy (CCE), a framework in which CO2 emissions are reduced, removed,
recycled and reused - as opposed to being released into the atmosphere.
Ahmad O. Al-Khowaiter, Aramco’s Chief Technology Officer, said: “This world’s
first demonstration represents an exciting opportunity for Aramco to showcase thepotential of hydrocarbons as a reliable and affordable source of low-carbon hydrogen andammonia. This milestone also highlights a successful transnational, multi-industry
partnership between Saudi Arabia and Japan. Multinational partnerships are key inrealizing the Circular Carbon Economy, championed by the Saudi Arabian G20
Presidency.”
Toyoda Masakazu, Chairman and Chief Executive Officer of IEEJ, said: “Blueammonia is critical to Japan’s zero carbon emission ambitions to sustain the balance
between the environment and the economy. About 10% of power in Japan can begenerated by 30 million tons of blue ammonia. We can start with co-firing blue ammonia
in existing power stations, eventually transitioning to single firing with 100% blueammonia. There are nations such as Japan which cannot necessarily utilize Carbon
Capture and Storage (CCS) or EOR due to their geological conditions. The carbon neutral
blue ammonia/hydrogen will help overcome this regional disadvantage.”
Dr. Fahad Al-Sherehy, Vice President of Energy Efficiency and Carbon
Management at SABIC, said: “At SABIC, we can economically leverage our existing
infrastructure for hydrogen and ammonia production with CO2 capture. Our experiencein the full supply chain along with integrated petrochemicals facilities will play animportant role in providing blue ammonia to the world.”
Ammonia contains approximately 18% hydrogen by weight and is already a widely traded2

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chemical othe world stage. It releases zero CO2 emissions when combusted in a thermal
power plant and has the potential to make a significant contribution to an affordable andreliable low-carbon energy future. SABIC and Mitsubishi Corporation, which isrepresented on the IEEJ study team involved in the project, are overseeing the transportlogistics in partnership with JGC Corporation, Mitsubishi Heavy Industries Engineering,Ltd., Mitsubishi Shipbuilding Co., Ltd. and UBE Industries, Ltd.
About Aramco
Aramco is a world-leading integrated energy and chemicals company. We are driven by
our core belief that energy is opportunity. From producing approximately one of every
eight barrels of the world’s crude oil supply to developing new energy technologies, ourglobal team is dedicated to creating positive impact in all that we do. We focus on making
our resources more sustainable and more useful, promoting long-term economic growthand prosperity around the world. https://www.aramco.com
About IEEJThe Institute of Energy Economics, Japan was established in June 1966 as a private
institute supported by energy industries. The original aim of its establishment was to carryon research activities specialized in the area of energy from the viewpoint of the national
economy as a whole in a bid to contribute to sound development of the Japanese energysupplying and energy consuming industries and to the improvement of people’s life in thecountry by objectively analyzing energy problems and providing basic data, informationand reports necessary for the formulation of policies.
With the diversification of social needs, IEEJ has expanded its scope of research activities
to include such topics as environmental problems and international cooperation closely
related to energy. https://eneken.ieej.or.jp
About SABICSABIC is a global leader in diversified chemicals headquartered in Riyadh, Saudi Arabia.
It manufactures on a global scale in the Americas, Europe, Middle East and Asia Pacific,
making distinctly different kinds of products: chemicals, commodity and highperformance plastics, agri-nutrients and metals. SABIC supports its customers byidentifying and developing opportunities in key end markets such as construction,
medical devices, packaging, agri-nutrients, electrical and electronics, transportation andclean energy. https://www.sabic.com
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Conceptual Flow Diagram of“Blue Ammonia” Supply Chain Demonstration(Duration: August 2020 – October 2020)

Blue Ammonia Carrier at Jubail terminal in Saudi Arabia

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Contact：report@tky.ieej.or.jp